HomeMy WebLinkAbout04 - Purchase of Tax Defaulted Real Property - 2173 Orchard DriveITEM 4
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Assistant City Manager
SUBJECT: Resolution 2001 -_ Authorizing the Purchase of Tax Defaulted Real
Property in Santa Ana Heights (APN #439 - 341 -01, 2173 Orchard Drive)
RECOMMENDED (a) Adopt Resolution 2001 -_ authorizing the Mayor to execute a Sale by
ACTIONS: Agreement for tax - defaulted real property at 2173 Orchard Drive in Santa Ana
Heights (APN #439 - 341 -01); and
(b) Direct staff to begin the neighborhood consultation and planning process
associated with a public use of the subject parcel within two years.
BACKGROUND: When a property owner neglects to pay property taxes for at least five years, the
County Tax Collector may sell the property to recoup the outstanding taxes
( §3691 of the Revenue and Taxation Code). Prior to any sale of the tax - defaulted
property to the general public:
"... the state or city or any taxing agency or revenue district may file with the
county tax collector written objection to the sale of along with all application to
purchase ... any property that is or may be needed for public use. The written
objection shall specify ... the public purpose to which file property is intended to
be devoted."
Section 3695.4 of the Revenue and Taxation Code
On March 12, 2001, the County of Orange notified the City that a parcel
addressed at 2173 Orchard Drive (Assessor's Parcel Number 439 - 341 -01) in Santa
Ana Heights (on the northern side of Orchard Drive between Cypress and Birch)
had tax - defaulted. The outstanding property taxes are $12,800.00.
This tax - defaulted parcel today contains a small, dilapidated residence and may
contain a portion of horse stalls and a riding ring associated with an equestrian
center. While Public Works staff confirmed this understanding based on the
legal description of the parcel, a full survey of the subject parcel will better
ascertain its boundaries.
Subject
Parcel
Newport Beach City Council
Page 2
Photos of Current Use
Because the City has an interest in using land in Santa Ana Heights for
governmental purposes including, but not limited to, a site for a permanent fire
station or for increasing the park acreage within Santa Ana Heights, I consulted
with the City Manager and formally "objected" to the sale of the subject parcel
on March 23, 2001 (letter attached as Attachment B).
With the objection noted, the County is prepared to sell the subject parcel to the
City - as long as the City uses the parcel for "the public purpose" for which we
acquired the parcel within two years - for $12,800 plus the nominal cost of
noticing the parcel's sale in the newspaper. The County requires that the City
adopt a resolution stating its intent to purchase the property. We must do so no
later than May 17, 2001.
Should the City not use the property for a public purpose within two years, State
law directs that the property return to the "party who was assessed with the
property prior to the imposition of the County Tax Collector's Power to Sell."
In preparation for the Council's consideration of this item, I have notified
representatives of the Santa Ana Heights Project Area Advisory Committee
(PAC) to solicit their views on this matter. I also asked Code Enforcement
Supervisor Jim Sinasek to visit the subject property. I will report any comments
to the Council at the May 8, 2001 meeting.
THIS AGENDA This Agenda Item asks the City Council to adopt a resolution authorizing the
ITEM Mayor to execute the Sale by Agreement associated with the subject parcel (APN
439 - 341 -01) and to direct staff to proceed with a planning process associated with
the parcel's public use.
ATTACHMENTS: Attachment A - Resolution 2001 -_
Attachment B - Agreement to Purchase Tax - Defaulted Real Property
(APN 439 - 341 -01)
Attachment C - City's March 23, 2001 Letter to County of Orange
Page 3
Attachment A
Resolution 2001-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
RELATING TO A SALE BY AGREEMENT
FOR TAX - DEFAULTED REAL PROPERTY
IN SANTA ANA HEIGHTS
WHEREAS, the City of Newport Beach has filed for an annexation of territory within its
Sphere of Influence known as Santa Ana Heights; and
WHEREAS, the City is desirous of adding to public spaces and public amenities in the Santa
Ana Heights area; and
WHEREAS, in March of 2001, the Orange County Treasurer -Tax Collector issued a notice to
the City of the County's intent to sell certain tax - defaulted real property (APN #439 - 341 -01) at
or near 2173 Orchard Drive in Santa Ana Heights ( "subject parcel "); and
WHEREAS, the amount of delinquent taxes is $12,800; and
WHEREAS, in March of 2001, the City formally objected to the sale of this tax - defaulted
real property and stated the City's interest in acquiring the property for public purposes; now,
therefore be it
RESOLVED by the City Council of the City of Newport Beach that it hereby authorizes
the Mayor to execute a Sale by Agreement for the subject parcel for $12,800 plus any noticing
and /or escrow costs associated with the parcel's sale.
ADOPTED this 8th day of May, 2001.
GAROLD B. ADAMS
Mayor
ATTEST:
LAVONNE HARKLESS
City Clerk
AGREEMENT TO PURCHASE TAX- DEFAULTED PROPERTY
This Agreement is made this day of , 2001, by and between the Board of Supervisors of
Orange County, State of California, and the City Council of the City of Newport Beach ( "PURCHASER"
and "CITY "), pursuant to the provisions of Division 1, Part 6, Chapter 8, of the Revenue and Taxation
Code.
The real property situated within said county, hereinafter set forth and described in this agreement is tax -
defaulted and is subject to the power of sale by the tax collector of said county for the nonpayment of taxes,
pursuant to provisions of law.
WITNESSETH
WHEREAS, there is situated in unincorporated Santa Ana Heights that certain real property
described in Exhibit "A," attached hereto and made a part hereof, which has been tax - defaulted for five (5)
years or more, and
WHEREAS, the taxes which are levied on said property include taxes which will, upon
annexation, be collected on behalf of CITY by the Orange County Tax Collector, and
WHEREAS, CITY needs the property described in Exhibit "A" for a public purpose and intends
to devote the property to said purpose two (2) years from the date of this agreement becomes effective.
TERMS AND CONDITIONS
It is mutually agreed as follows:
I. That as provided by Section 3800 of the Revenue and Taxation Code, the cost of giving
notice of this agreement shall be paid by the PURCHASER,
2. That the PURCHASER agrees to pay the sum set forth in Exhibit "A ", under the heading
"PURCHASE PRICE," within 45 days after the date this agreement becomes effective.
Upon payment of said sum to the tax collector, the tax collector shall execute and deliver
a deed conveying title to said property to PURCHASER.
3. That for two (2) years following the date upon which this Agreement becomes effective,
CITY will not offer said property for sale.
4. That within two (2) years from the date this Agreement becomes effective, CITY will
either devote said property to public purposes, or execute a rescission of the tax deed as
provided for in paragraph 4, herein.
5. That in the event CITY fails to devote said property to public purposes within two (2)
years after the date of recordation of the deed, or if CITY desires to divest itself of said
property within said two (2) year period, and not within any extension period approved
by the Board of Supervisors, CITY shall execute a rescission of the tax deed which
conveyed such property to CITY, and the status of such property will return to that of
tax - defaulted real property.
6. That as provided by Section 3808 of the Revenue and Taxation Code, the amount of the
"Purchase Price" paid pursuant to this Agreement to the Orange County Tax Collector
shall be deposited, like tax collections, in the delinquent sale trust fund and shall be
distributed pursuant to Section 4671 et seq. of the Revenue and Taxation Code.
7. This Agreement shall become effective on a date determined by the Orange County Tax
Collector, but no sooner than 5:01 p.m. on the 21' day after the first publication of the Notice
of Agreement.
8. If all or any portion of any individual parcel listed in Exhibit "A" is redeemed prior to the
effective date of this agreement, this agreement shall be null and void as to that individual
parcel. This agreement shall also become null and void and the right of redemption restored
upon the PURCHASER'S failure to comply with the terms and conditions of this agreement.
The undersigned hereby agree to the terms and conditions of this agreement and are duly
authorized to sign for said agencies.
ATTEST:
(Purchaser)
(seal)
ATTEST: BOARD OF SUPERVISORS
Clerk of the Board of Supervisors
By_
Deputy
By
ORANGE COUNTY, CALIFORNIA
a
Chairman
Pursuant to the provisions of Section 3775 of the Revenue and Taxation Code, the governing body
of the City of hereby agrees to the sale price as provided in this
agreement.
ATTEST: CITY OF
M
Deputy
(seal)
Mayor
Pursuant to the provisions of Section 3795 of the Revenue and Taxation Code, the Controller
approves the foregoing agreement this day of 12001.
KATHLEEN CONNELL, CALIFORNIA STATE CONTROLLER
0
EXHIBIT "A"
First Year Default Purchase
Description Delinquent Number Price
Parcel 439-34 1-01 $1504.64 94- 010098 $12,800.00
THE REAL PROPERTY IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF
CALIFORNIA, DESCRIBED AS:
THE SOUTHERLY 125 FEET OF LOT 133 OF TRACT NO. 706, HARBOR VIEW ADDITION TO
SANTA ANA HEIGHTS, AS PER MAP RECORDED IN BOOK 21, PAGE 25 OF MISCELLANEOUS
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY.
TOGETHER WITH THE NORTHERLY ONE HALF OF LOT 152 OF SAID TRACT NO. 706.
TOGETHER WITH THE SOUTHWESTERLY ONE HALF OF LOT 151 OF SAID TRACT NO. 706.
EXCEPT THEREFROM THE SOUTHERLY ONE HALF OF SAID LOT 151.
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CITY OF NEWPORT BEACH
M
March 23, 2001
Ms. Renee Harvey
Tax Deed Property Specialist
Post Office Box 1438
Santa Ana, California 92702
RE: NOTICE OF INTENT TO SELL TAX - DEFAULTED PROPERTY
2173 ORCHARD DRIVE, SANTA ANA HEIGHTS
APN 439 - 341-01
Dear Ms. Harvey:
Per Section 3700 of the Revenue and Taxation Code, this letter formally notifies your
office that the City of Newport Beach hereby pb ects to the sale of the subject property.
We intend to meet the minimum bid requirement ($12,800.00) for APN 439 - 341 -01 and
intend to devote the subject property to a public purpose within two years of the date
of purchase.
Please direct any questions you may have about this matter to me at 949 -644 -3002.
Sincerely,
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Dave
Dep uty City Manager
cc: Mr. Homer L. Bludau, City Manager
Tim Riley, Fire Chief
City Hall . 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768
ORANG NT
E COUNTY
Box 1438
SaOnta Ana, CA 92702
TAX COLLECTOR
Telephone (714) 834 -5701
Fax (714) 8344342
March 12, 2001
City of Newport Beach
Attn: David A. Kiff, Asst. to the City Manager
3300 Newport Blvd.
Newport Beach, CA 92663 -8915
Enclosed is a copy of a Resolution of the Board of Supervisors approving the sale of certain tax -
defaulted property in the City of Newport Beach. (See attachment). This is sent to you to comply with
Section 3700 of the Revenue and Taxation Code.
We require written notification by 3/26/01, regarding either consent or objection to this sale.
If you object to the sale, you may purchase the property for the amount of the minimum bid shown on
the attached sheet.
You are hereby notified that the terms of the "Sale by Agreement" for purchase include the following:
That within two (2) years from the date of purchase, the City will devote said property to the public
purpose for which they acquired it (Section 3807.5 of the Revenue and Taxation code); that in the
event the City fails to devote said property to the stated public purpose within two (2) years, the City
attempts to sell the property for any reason, the terms of the agreement and deed will automatically
revert the property from the ownership of the City to the ownership to the party who was assessed with
the property prior to imposition of the County Tax Collector's Power to Sell.
Should you have any questions, please call me at (714) 834 -3527 or Mrs. Laguna at (714) 834 -3808.
Si erely,
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Renee Harvey
Tax Deed Property Specialist
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